Developments in the Taxation of Corporate Profit in the OECD since 1965: Rates, Bases and Revenues
AbstractThis paper describes developments in corporation taxes in the OECD over the last 40 years. It pays particular attention to the apparent divergence in the trends of the average statutory corporation tax rate and the average ratio of corporation tax revenues to GDP: the former has declined over time, while the latter has risen. It develops a simple framework for assessing the expected effect of the tax rate on tax revenues, and estimates the relationship using a panel of aggregate data for 20 OECD countries from 1965 to 2004, controlling for a measure of the tax base and other factors. There is only weak evidence of any relationship between the two. Evidence which does support a relationship is consistent with the finding of Clausing (2006) that the relationship is nonlinear, and that the implied revenue-maximising tax rate is likely to be low.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Oxford University Centre for Business Taxation in its series Working Papers with number 0704.
Date of creation: 2007
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-10-20 (All new papers)
- NEP-HIS-2007-10-20 (Business, Economic & Financial History)
- NEP-PBE-2007-10-20 (Public Economics)
- NEP-PUB-2007-10-20 (Public Finance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Devereux, Michael P. & Lockwood, Ben & Redoano, Michela, 2008.
"Do countries compete over corporate tax rates?,"
Journal of Public Economics,
Elsevier, vol. 92(5-6), pages 1210-1235, June.
- Devereux, Michael P & Lockwood, Ben & Redoano, Michela, 2002. "Do Countries Compete Over Corporate Tax Rates?," The Warwick Economics Research Paper Series (TWERPS) 642, University of Warwick, Department of Economics.
- Devereux, Michael P & Lockwood, Ben & Redoano, Michela, 2002. "Do Countries Compete over Corporate Tax Rates?," CEPR Discussion Papers 3400, C.E.P.R. Discussion Papers.
- Devereux, Michael P & Griffith, Rachel, 2003.
"Evaluating Tax Policy for Location Decisions,"
International Tax and Public Finance,
Springer, vol. 10(2), pages 107-26, March.
- Alan J. Auerbach & James M. Poterba, 1987.
"Why Have Corporate Tax Revenues Declined?,"
in: Tax Policy and the Economy, Volume 1, pages 1-28
National Bureau of Economic Research, Inc.
- Alan J. Auerbach & James M. Poterba, 1987. "Why Have Corporate Tax Revenues Declined?," NBER Working Papers 2118, National Bureau of Economic Research, Inc.
- Alan J. Auerbach & James M. Poterba, 1986. "Why Have Corporate Tax Revenues Declined?," Working papers 435, Massachusetts Institute of Technology (MIT), Department of Economics.
- Slemrod, Joel, 2004. "Are corporate tax rates, or countries, converging?," Journal of Public Economics, Elsevier, vol. 88(6), pages 1169-1186, June.
- Michael P. Devereux & Rachel Griffith & Alexander Klemm, 2002.
"Corporate income tax reforms and international tax competition,"
CEPR & CES & MSH, vol. 17(35), pages 449-495, October.
- Deveraux, M. & Griffith, R & Klemm, A., 2002. "Corporate income tax reforms and international tax competition," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Huizinga, Harry & Laeven, Luc, 2007. "International Profit Shifting within European Multinationals," CEPR Discussion Papers 6048, C.E.P.R. Discussion Papers.
- Michael P. Devereux & Alexander Klemm, 2003.
"Measuring Taxes on Income from Capital: Evidence from the UK,"
CESifo Working Paper Series
968, CESifo Group Munich.
- Michael Devereux & Alexander Klemm, 2003. "Measuring taxes on income from capital: evidence from the UK," IFS Working Papers W03/03, Institute for Fiscal Studies.
- Griffith, R & Chennells, C, 1997. "Taxing Profits in a Changing World," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
- Simon Loretz, 2008.
"Corporate taxation in the OECD in a wider context,"
0821, Oxford University Centre for Business Taxation.
- Aleksandra Riedl & Silvia Rocha-Akis, 2007.
"Testing the tax competition theory: How elastic are national tax bases in western Europe?,"
Department of Economics Working Papers
wuwp112, Vienna University of Economics, Department of Economics.
- Aleksandra Riedl & Silvia Rocha-Akis, 2008. "Testing the tax competition theory: How elastic are national tax bases in Western Europe?," Working Papers 142, Oesterreichische Nationalbank (Austrian Central Bank).
- Dwenger, Nadja & Steiner, Viktor, 2008.
"Effective profit taxation and the elasticity of the corporate income tax base: Evidence from German corporate tax return data,"
arqus Discussion Papers in Quantitative Tax Research
57, arqus - Arbeitskreis Quantitative Steuerlehre.
- Nadja Dwenger & Viktor Steiner, 2008. "Effective Profit Taxation and the Elasticity of the Corporate Income Tax Base: Evidence from German Corporate Tax Return Data," Discussion Papers of DIW Berlin 829, DIW Berlin, German Institute for Economic Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Li Liu).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.